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  1. Financial markets and the economy in 2021

    Good news, bad news and real news. In 2021, bouncing back from the depths of the pandemic, we got a lot of good news. But not good enough for the stimulative policies to be pulled back. We also got an indisputable reminder of what really drives financial market returns.

  2. Sustainability report 2021

    One of our obligations as a Swan-labelled fixed income fund is to publish an annual report on the sustainability performance of the fund.

  3. Countervailing forces

    When something dramatic happens, we often end up telling clients to calm down and wait it out. With prices on stocks and corporate bonds plummeting, selling is rarely if ever profitable. This time, however, is a different story.

  4. Russia – what now?

    And so Russia crossed a border – literally – that no one thought any European country would cross in modern times. The Moscow Stock Exchange plummeted, although a major rebound reduced losses, and Western stock markets were in no way untouched. Russia’s invasion came against a backdrop of fears of inflation and rising interest rates, which the stock market does not like either.

  5. Save your tears

    For a lot of investors, January was a month of negative returns. On the back of news that annual US headline inflation had reached 7.0 per cent, fears of persistent inflation stoked visions of painful interest rates hikes. Rates did rise a bit, as did credit spreads. As a result, there was a general decline in the global bond market, both for investment grade and for high yield.

  6. Statement of non-causality

    You’re excused if you feel like celebrating 2021. In financial markets, a lot of people made a lot of money from risky investments like stocks and corporate bonds. Presumably risk-free investments like US Treasuries, or moderately risky investment grade bonds, produced large losses.

  7. Notice to shareholders Pareto plc

    The supplement to the prospectus for Pareto plc has been updated for Taxonomy disclosures for the Sustainable Finance Disclosure Regulation (SFDR).

  8. Extrapolation and learning

    We all know that financial markets tend to exaggerate the importance of new information, overshooting or undershooting. If things look rosy, there’s no limit to just how rosy they can look. When the outlook darkens, we are prompted to imagine all the bad things that can happen. And then the initial impulse is perpetuated and enhanced; this doesn’t necessarily play out immediately.

  9. Climate risk in practice: Carbon tax?

    This summer, to picture the effects of a global carbon tax, we conducted an exercise, a stress test if you will, on the Pareto Aksje Norge portfolio. The conclusions were somewhat different from what you might expect.

  10. Building our boat in voyage

    Responsible, sustainable investment is a young field. Motives, perceptions, definitions and regulations are constantly changing. Just a few years ago, a lot was driven by idealism.